Correspondent Seller Guide Updates UCD & HMDA

1 Correspondent Seller Guide Updates UCD & HMDA. Impacted Topic Impacted Products Current Guidelines Revised Guidelines Document Closed Loan Section : Standard Agency Uniform Closing Dataset (UCD). Purchase Loan Delivery Agency Plus N/A New Subtopic The Uniform Closing Dataset (UCD) is a standardized industry dataset representing information from the Review Process and Purchase HomeReady Closing Disclosure that can be communicated electronically. The UCD is a component of Fannie Mae and - Agency Review Mortgage Freddie Mac's Uniform Mortgage Data Program , an ongoing initiative created to provide uniform loan data Purchases Home Possible standards for the loans that Fannie Mae and Freddie Mac (GSEs) purchase.

2 Mortgage Correspondents will be required to submit the UCD to both GSEs and provide the UCD Findings Report DU Refi PlusTM (Fannie Mae) and Loan Closing Advisor Feedback Certificate (Freddie Mac) with the closed loan Texas Cash-Out package with all messaging visible. Refinance First Correspondents will be required to submit the UCD XML with the closed loan package. The Mortgages requirement to embed the Closing Disclosure PDF in the UCD XML file will be fully enforced no earlier [50(a)(6) than April 2018, depending on the GSE's requirements. To avoid any delays with loan review and potential issues with loan purchase, both the Findings Report and Feedback Certificate should reflect no fatal errors or critical warning messages that could result in salability issues with the GSEs.]

3 If the Final Closing Disclosure is updated, Correspondents will be required to resubmit loans to the UCD. portals and provide an updated UCD Findings Report and Loan Closing Advisor Feedback Certificate to SunTrust. Note: Correspondent Closing Checklist (COR 0013) has been revised. HMDA Section All The Home Mortgage Disclosure Act (HMDA) requires the compilation and reporting of data about The Home Mortgage Disclosure Act (HMDA) requires the compilation and reporting of data about Information - Compliance applications received and about applicant(s) characteristics. applications received and about applicant(s) characteristics. General Overview HMDA makes available to the public information that shows whether financial institutions are serving HMDA makes available to the public information that shows whether financial institutions are serving the housing credit needs of their neighborhoods and communities.

4 The housing credit needs of their neighborhoods and communities. The data can also help identify possible discriminatory lending patterns. The data can also help identify possible discriminatory lending patterns. In order to be in compliance with HMDA, SunTrust requires the completion of Section X of the Uniform In order to be in compliance with HMDA, SunTrust requires the completion of Section X of the Uniform Residential Loan Application (1003) entitled Information for Government Monitoring Purposes. Residential Loan Application (1003) and the Demographic Information addendum to be completed as Race, ethnicity and gender information must be provided for all borrowers if the application was taken of January 1, 2018.

5 Face-to-face. Race, ethnicity and gender information must be provided for all borrowers if the application was taken Additionally, any discrepancies between the initial and final typed application (1003) must be face-to-face.. explained by the Correspondent lender. Additionally, any discrepancies between the initial and final typed application (1003) must be explained If the required government monitoring information has not been supplied by the Correspondent or by the Correspondent lender. does not match on the initial and final typed 1003's, the underwriter or purchase reviewer will require If the required demographic information has not been supplied by the Correspondent or does not the information as a prior to closing (PTC) or prior to funding (PTF) condition.

6 Match on the initial and final typed 1003's, the underwriter or purchase reviewer will require the SunTrust will not purchase a loan without accurate government monitoring information. information as a prior to closing (PTC) or prior to funding (PTF) condition. The age of a borrower is not required for HMDA reporting. SunTrust will not purchase a loan without accurate demographic information. The date of an applicant's birth is, however, requested on the 1003 loan application. The age of a borrower is not required for HMDA reporting. This information permits the Lender to confirm the applicant is able to enter into a legally binding The date of an applicant's birth is required on the 1003 loan application.

7 Contract and may assist in resolving discrepancies that may appear on a credit report. This information permits the Lender to confirm the applicant is able to enter into a legally binding In addition, the USA Patriot Act requires the Lender to obtain and verify each applicant's date of birth. contract and may assist in resolving discrepancies that may appear on a credit report. In addition, the USA Patriot Act requires the Lender to obtain and verify each applicant's date of birth. Delegated Correspondent lenders are required to provide the ULI (Universal Loan Identifier). If a delegated Correspondent lender has determined it is not subject to HMDA Reg C, the lender is required to notify SunTrust Mortgage upon file submission, so that a SunTrust ULI can be generated.

8 Last Revision Date: 09/22/2017 ( Correspondent ) Confidential and Proprietary to SunTrust Mortgage Page 1 of 2. Correspondent Seller Guide Updates UCD & HMDA. Impacted Topic Impacted Products Current Guidelines Revised Guidelines Document HMDA Section All For purposes of IRS 1098 year end reporting, SunTrust Mortgage, Inc. only reports mortgage interest For purposes of IRS 1098 year end reporting, SunTrust Mortgage, Inc. only reports mortgage interest Information Compliance that has been paid by the borrower to SunTrust Mortgage, Inc. via the regular monthly principal and that has been paid by the borrower to SunTrust Mortgage, Inc. via the regular monthly principal and HMDA Overview interest payment.

9 Interest payment. Compliance Any interest paid to the Correspondent lender (including per diem interest on the Settlement Any interest paid to the Correspondent lender (including per diem interest on the Closing Disclosure). Issues Statement) prior to regular monthly mortgage payments received by SunTrust Mortgage, Inc. should prior to regular monthly mortgage payments received by SunTrust Mortgage, Inc. should be reported be reported to the IRS by the Correspondent . This policy applies to all loans except table fund to the IRS by the Correspondent . This policy applies to all loans except table fund transactions. transactions. The Correspondent lender, in all cases, is responsible for IRS 1098 year end reporting of discount The Correspondent lender, in all cases, is responsible for IRS 1098 year end reporting of discount points.

10 There are no circumstances or transactions, in the Correspondent Lending Division of SunTrust points. There are no circumstances or transactions, in the Correspondent Lending Division of SunTrust Mortgage, Inc., where it is appropriate for SunTrust Mortgage, Inc. to report discount points for IRS. Mortgage, Inc., where it is appropriate for SunTrust Mortgage, Inc. to report discount points for IRS 1098 year end reporting. 1098 year end reporting. For HMDA reporting purposes, loans sold to SunTrust Mortgage, Inc., may report a purchaser type code For HMDA reporting purposes, SunTrust Mortgage, Inc., as purchaser, may be classified as number of (71)-Credit union, mortgage company, or finance company.